What the Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025 Means for You as an Employee

The Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025 (2025 No 35) is a new law in New Zealand that allows employers to deduct pay from employees who engage in partial strikes. A partial strike happens when employees reduce their work output or perform only some of their normal duties while still attending work, rather than fully stopping work as in a full strike. This law, which builds on settings that existed before 2018, aims to balance the power between employers and employees during industrial action. However, it has sparked debate, especially from employees and unions who see it as a challenge to their rights. This blog explores the law from the employee’s perspective, highlighting its pros and cons, potential risks, and options for employees facing issues.

What’s This New Law All About?

The 2025 Amendment Act tweaks the Employment Relations Act 2000, giving employers the power to cut your pay if you’re involved in a partial strike. Unlike a full strike, where you stop work completely, a partial strike is when you’re still at work but not doing everything you normally would, like taking extra-long breaks together or refusing certain tasks. Before this law, employers couldn’t just dock your pay unless they suspended you or locked you out. Now, they’ve got two ways to reduce your wages during a partial strike:

• A Flat 10% Cut: They can take 10% off your pay for the time you’re striking.

• A Proportionate Cut: They can deduct an amount based on how much less work you’re doing, using a specific formula.

Your employer has to give you written notice before taking money out of your pay, and your union can ask for details on how the deduction was worked out. The idea is to push both sides to sort out disputes faster, but it’s got some workers worried about their rights.

What’s Good About It for You?

I know it might sound like this law is all about making life harder for employees, but there are a few silver linings:

• Clear Communication
  Your employer has to tell you in writing before they make deductions from your pay. This means you won’t be blindsided—you’ll know exactly what’s coming and why. It gives you a chance to think carefully about whether a partial strike is worth it.

• Might Speed Up Talks
  Nobody wants to lose money, right? The threat of pay cuts could push your employer and your union to negotiate quicker, which might mean you get that better deal on wages or conditions sooner.

• Union Backup
  If you’re in a union and think your employer’s deductions are unfair, your union can demand to see how they calculated it. They can take it to the Employment Relations Authority if something’s off, which is a bit of a safety net for you.

• Know Where You Stand
  The law spells out what counts as a partial strike. For example, saying no to voluntary overtime or on-call shifts (unless they’re part of your usual job) doesn’t count. This clarity helps you avoid surprises about what might cost you.

What’s Not So Great?

Let’s be real—most employees and unions, like the New Zealand Council of Trade Unions, aren’t thrilled about this law. Here’s why it’s got them concerned:

• It Feels Like a Punishment
  Partial strikes are a legal way to stand up for better pay or conditions. Docking your pay for doing this can feel like you’re being penalised for sticking up for yourself. It might make you think twice about joining in, even if the cause is fair.

• Less Money in Your Pocket
  Whether it’s a 10% cut or more, losing pay hurts. If you’re already stretching to cover rent or groceries, this could make things really tough, especially if the strike drags on.

• Risk of Unfair Deductions
  Some worry employers might go overboard, docking more pay than they should. Even though unions can challenge this, it’s a hassle to sort out, and it can leave you stressed.

• Bad Vibes at Work
  Knowing your boss can cut your pay might make things tense at work. It could erode trust, leaving you feeling less valued or supported.

• More Legal Fights
  Rachel Mackintosh from the NZ Council of Trade Unions pointed out that this law might lead to more disputes in court, which could drag things out and make life harder for everyone.

Risks You Should Watch Out For

If you’re thinking about joining a partial strike, here are some things to keep in mind:

• Money Worries
  A pay cut, even just 10%, can hit hard if you’re on a tight budget. For low-wage workers, this could mean struggling to pay bills.

• Unfair Treatment
  The Crimes (Theft by Employer) Amendment Act 2025 makes it riskier for employers to mess up deductions, but you might still end up in a dispute if you think they’ve taken too much.

• Bosses Playing Hardball
  Employers can choose between a flat 10% or a bigger cut based on their calculations. This flexibility could lead to inconsistent or unfair deductions across different workplaces.

• Scaring You Off
  The threat of losing pay might make you or your co-workers hesitant to strike, even when it’s the best way to push for change. This could weaken your ability to negotiate as a group.

• Longer Disputes
  Instead of speeding things up, the law might lead to more arguments about deductions, which could mean longer waits for a resolution.

What Can You Do If Things Go Wrong?

If your employer docks your pay and you think it’s unfair, don’t panic—you’ve got options:

• Get Your Union Involved
  If you’re in a union, they can request details about the deduction and challenge it with the Employment Relations Authority if it’s wrong. They’re there to have your back.

• Employment Relations Authority
  You or your union can take disputes to the Employment Relations Authority. They’ll look into whether the deduction was fair and can make your employer fix it if they got it wrong.

• Try Mediation
  The Ministry of Business, Innovation and Employment offers free mediation to sort out workplace issues. It’s a less formal way to talk things out with your employer and find a solution.

• Raise a Personal Grievance
  If you feel unfairly treated—like being dismissed or singled out for striking—you can file a personal grievance under the Employment Relations Act 2000. Note that if you earn over $180,000, you might not be able to claim for unjustified dismissal, but other grievances are still an option.

• Stick Together
  Working with your union and co-workers gives you more clout. A united group is harder for employers to ignore, whether you’re challenging deductions or negotiating better terms.

• Talk to Employee First NZ
  We can explain your rights and help you decide if you’ve got a case. We can also guide you through disputes or check if deductions follow the law.

Wrapping It Up

The Employment Relations (Pay Deductions for Partial Strikes) Amendment Act 2025 shakes things up for workers in New Zealand. It’s got some upsides, like clear rules and the chance for quicker negotiations, but it also makes partial strikes riskier with pay cuts and potential workplace tension. For many employees, it feels like the law gives employers the upper hand, which can make standing up for your rights a bit scarier.

If you’re thinking about joining a partial strike, weigh the risks—like losing pay or sparking disputes—against what you’re fighting for. And if things don’t feel right, don’t hesitate to reach out to your union, try mediation, or get legal advice. Knowing your rights and having a plan can make all the difference. Stay informed, stay supported, and keep pushing for what’s fair.